The UK government’s Autumn Budget has unveiled an unprecedented investment in research and development (R&D), committing £20.4bn to bolster innovation across science, technology, and life sciences.
This historic Autumn Budget signals a robust endorsement of the UK’s R&D sector as a driver for economic growth, aiming to strengthen the nation’s global competitive edge while funding public services and raising living standards.
Record funding for Horizon Europe and UK R&D
The Autumn Budget confirms the UK’s full association with Horizon Europe, the EU’s largest funding scheme for collaborative research, providing UK scientists with access to over £80bn in funding.
By securing this association, the UK reinforces its place within the world’s leading R&D networks, fostering international partnerships on cutting-edge scientific projects.
In addition to Horizon Europe, the Department for Science, Innovation and Technology (DSIT) will receive an increased R&D budget of £13.9bn, while core research funding will rise to £6.1bn.
This expanded budget aims to support the UK’s research infrastructure, advance technological breakthroughs, and lay a strong foundation for the country’s economic growth.
Major investments in life sciences
The Autumn Budget dedicates £520m to the Life Sciences Innovative Manufacturing Fund (LSIMF), marking a pivotal investment in the UK’s health and pharmaceutical sectors.
This fund, which begins with an initial £70m in grants, is expected to catalyse up to £1.8bn in private investment, generate thousands of skilled jobs, and secure the UK’s position as a leader in life sciences.
The LSIMF will play a critical role in strengthening the UK’s capacity to produce vital medical treatments, enhance NHS resilience, and prepare the healthcare system for future emergencies.
By focusing on manufacturing innovation, the fund aligns with the government’s broader objectives to expand life sciences as a major contributor to economic resilience and public health stability.
R&D Missions and Proof of Concept Fund
The Autumn Budget also introduced the R&D Missions Programme, a targeted initiative with an initial £25m investment aimed at tackling national challenges.
This programme will partner with private and nonprofit sectors to support advancements in areas such as healthcare and clean energy, translating scientific innovation into real-world benefits for the public.
Additionally, the government has launched a £40m Proof of Concept Fund to support university-based research spinouts.
Designed to help researchers bring their ideas to market, this fund focuses on creating high-growth start-ups that contribute to job creation and economic momentum.
Success stories, such as semiconductor company Pragmatic and biotech leader Oxford Nanopore, highlight the potential for university spinouts to drive both regional and national growth.
Continued support for regional innovation
To further stimulate regional innovation, the government extended the Innovation Accelerator and Made Smarter programmes.
The Innovation Accelerator programme will concentrate on high-growth regions, including Glasgow, Manchester, and the West Midlands, each home to promising projects such as Glasgow’s Chemify and the Biochar Cleantech Accelerator in the West Midlands.
The Made Smarter programme will receive up to £37m to promote digital transformation in UK manufacturing, supporting sustainable practices and enhancing productivity.
This investment will connect manufacturers with digital solution providers, helping the industry adopt advanced technologies to boost output and competitiveness.
Expanding digital access with Project Gigabit
A cornerstone of the Autumn Budget, Project Gigabit will receive at least £500m to bring high-speed internet to underserved areas across the UK.
With a target of full gigabit coverage by 2030, this investment aims to ensure equal access to digital resources for businesses and communities nationwide, helping to bridge the digital divide and foster economic inclusion.
Streamlining government functions and technology adoption
To optimise government operations, DSIT will invest up to £80m in the Shared Services Strategy, modernising systems across nine departments to improve efficiency and reduce taxpayer costs.
Furthermore, a government-led review will examine barriers to the adoption of transformative technologies, with a focus on high-growth sectors.
This initiative, led by Professor Dame Angela McLean and Dr Dave Smith, seeks to unlock productivity and growth by identifying solutions for greater technology integration.
Autumn Budget: A vision for innovation-led growth
The Autumn Budget sets a bold vision for the UK’s economic future, underscoring the role of R&D and innovation as pillars of sustainable growth.
With record investment in science and technology, the UK positions itself as a global innovation leader, enhancing national resilience, fostering job creation, and ensuring prosperity for communities across the country.
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